Correlation Between American Tower and PROG Holdings

Can any of the company-specific risk be diversified away by investing in both American Tower and PROG Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining American Tower and PROG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Tower Corp and PROG Holdings, you can compare the effects of market volatilities on American Tower and PROG Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Tower with a short position of PROG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Tower and PROG Holdings.

Diversification Opportunities for American Tower and PROG Holdings

0.09

Correlation Coefficient

American Tower  PROG Holdings

Significant diversification

The 3 months correlation between American and PROG is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding American Tower Corp and PROG Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROG Holdings and American Tower is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Tower Corp are associated (or correlated) with PROG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROG Holdings has no effect on the direction of American Tower i.e., American Tower and PROG Holdings go up and down completely randomly.

Pair Corralation between American Tower and PROG Holdings

Considering the 90-day investment horizon American Tower Corp is expected to under-perform the PROG Holdings. But the stock apears to be less risky and, when comparing its historical volatility, American Tower Corp is 1.95 times less risky than PROG Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The PROG Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,694  in PROG Holdings on May 5, 2025 and sell it today you would earn a total of  356.00  from holding PROG Holdings or generate 13.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

American Tower Corp  vs.  PROG Holdings

American Tower Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Tower Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, American Tower is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

PROG Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PROG Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PROG Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Tower and PROG Holdings

The main advantage of trading using opposite American Tower and PROG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Tower position performs unexpectedly, PROG Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PROG Holdings will offset losses from the drop in PROG Holdings' long position.

The idea behind American Tower Corp and PROG Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.